II 

Calendar No. 702 

118TH CONGRESS 

2D SESSION S. 5310 

[Report No. 118–296] 

To amend title 41, United States Code, to make changes with respect to 

the Federal Acquisition Security Council, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 13, 2024 

Mr. PETERS (for himself, Mr. ROUNDS, and Mr. SCOTT of Florida) introduced 

the following bill; which was read twice and referred to the Committee 

on Homeland Security and Governmental Affairs 

DECEMBER 16, 2024 

Reported by Mr. PETERS, with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

A BILL 

To amend title 41, United States Code, to make changes 

with respect to the Federal Acquisition Security Council, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Federal Acquisition 

5 Security Council Improvement Act of 2024’’. 


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1 SEC. 2. CHANGES WITH RESPECT TO THE FEDERAL ACQUI2 SITION SECURITY COUNCIL. 

3 (a) DEFINITION OF SOURCE OF CONCERN, COVERED

4 SOURCE OF CONCERN, RECOMMENDED ORDER, AND DES5 IGNATED ORDER.—Section 1321 of title 41, United States 

6 Code, is amended— 

7 (1) by redesignating paragraphs (5) through 

8 (8) as paragraphs (7) through (10); 

9 (2) by inserting after paragraph (4) the fol10 lowing new paragraph: 

11 ‘‘(5) COVERED SOURCE OF CONCERN.—The 

12 term ‘covered source of concern’ means a source of 

13 concern that is specifically designated as a ‘covered 

14 source of concern’ by a statute that states that such 

15 designation is for the purposes of this subchapter. 

16 ‘‘(6) DESIGNATED ORDER.—The term ‘des17 ignated order’ means an order described under sec18 tion 1323(c)(3).’’; and 

19 (3) by adding at the end the following new 

20 paragraph: 

21 ‘‘(11) RECOMMENDED ORDER.—The term ‘rec22 ommended order’ means an order recommended 

23 under section 1323(c)(2). 

24 ‘‘(12) SOURCE OF CONCERN.— 

25 ‘‘(A) IN GENERAL.—The term ‘source of 

26 concern’ means a source— 


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1 ‘‘(i) subject to the jurisdiction, direc2 tion, or control of the government of a for3 eign adversary, or operates on behalf of 

4 the government of a foreign adversary; or 

5 ‘‘(ii) that poses a risk to the national 

6 security of the United States based on col7 laboration with, whole or partial ownership 

8 or control by, or being affiliated with a 

9 military, internal security force, or intel10 ligence agency of a foreign adversary. 

11 ‘‘(B) FOREIGN ADVERSARY DEFINED.—In 

12 this paragraph, the term ‘foreign adversary’ has 

13 the meaning given the term ‘covered nation’ in 

14 section 4872(d) of title 10.’’. 

15 (b) ESTABLISHMENT AND MEMBERS OF COUNCIL.— 

16 Section 1322 of title 41, United States Code, is amend17 ed— 

18 (1) in subsection (a), by striking ‘‘executive 

19 branch’’ and inserting ‘‘Executive Office of the 

20 President’’; 

21 (2) in subsection (b)— 

22 (A) by amending paragraph (1) to read as 

23 follows: 

24 ‘‘(1) IN GENERAL.—The members of the Coun25 cil shall be as follows: 


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1 ‘‘(A) The Administrator for Federal Pro2 curement Policy. 

3 ‘‘(B) The Deputy Director for Manage4 ment of the Office of Management and Budget. 

5 ‘‘(C) The following officials, each of whom 

6 shall occupy a position at the level of Assistant 

7 Secretary or Deputy Assistant Secretary (or 

8 equivalent): 

9 ‘‘(i) Two officials from the Office of 

10 the Director of National Intelligence, one 

11 of which shall be from the National Coun12 terintelligence and Security Center. 

13 ‘‘(ii) Two officials from the Depart14 ment of Defense, one of which shall be 

15 from the National Security Agency. 

16 ‘‘(iii) Two officials from the Depart17 ment of Homeland Security, one of which 

18 shall be from the Cybersecurity and Infra19 structure Security Agency. 

20 ‘‘(iv) One official from the General 

21 Services Administration. 

22 ‘‘(v) One official from the Office of 

23 the National Cyber Director. 


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1 ‘‘(vi) Two officials from the Depart2 ment of Justice, one of which shall be from 

3 the Federal Bureau of Investigation. 

4 ‘‘(vii) Two officials from the Depart5 ment of Commerce, one of which shall be 

6 from the National Institute of Standards 

7 and Technology and one of which shall be 

8 from the Bureau of Industry and Security. 

9 ‘‘(viii) An official from any executive 

10 agency not listed under clauses (i) through 

11 (vii) whose temporary or permanent par12 ticipation is determined by the Chairperson 

13 of the Council to be necessary to carry out 

14 the functions of the Council while main15 taining the intended balance in subject 

16 matter expertise.’’; and 

17 (B) in paragraph (2)— 

18 (i) in the heading, by striking ‘‘LEAD

19 REPRESENTATIVES’’ and inserting ‘‘MEM20 BERS’’; 

21 (ii) by amending subparagraph (A)(i) 

22 to read as follows: 

23 ‘‘(i) IN GENERAL.—The head of each 

24 executive agency listed under paragraph 

25 (1)(C) shall designate the official or offiVerDate Sep 11 2014 03:19 Dec 17, 2024 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6401 E:\BILLS\S5310.RS S5310

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1 cials from that agency who shall serve on 

2 the Council in accordance with such para3 graph.’’; 

4 (iii) by amending subparagraph 

5 (A)(ii) to read as follows: 

6 ‘‘(ii) REQUIREMENTS.—To the extent 

7 feasible, any official designated under 

8 clause (i) shall have expertise in supply 

9 chain risk management, acquisitions, law, 

10 or information and communications tech11 nology.’’; and 

12 (iv) by amending subparagraph (B) to 

13 read as follows: 

14 ‘‘(B) FUNCTIONS.—A member of the 

15 Council shall— 

16 ‘‘(i) regularly participate in the activi17 ties of the Council; 

18 ‘‘(ii) ensure that any information re19 quested by the Council from the agency 

20 represented by the member is provided to 

21 the Council; and 

22 ‘‘(iii) ensure that the head of the 

23 agency represented by the member and 

24 other appropriate personnel of the agency 

25 are aware of the activities of the Council.’’; 


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1 (3) in subsection (c)— 

2 (A) by amending paragraph (1) to read as 

3 follows: 

4 ‘‘(1) IN GENERAL.—The Chairperson of the 

5 Council shall be— 

6 ‘‘(A) the National Cyber Director; or 

7 ‘‘(B) another member of the Council des8 ignated by the National Cyber Director.’’; and 

9 (B) in paragraph (2)— 

10 (i) in subparagraph (B), by striking 

11 ‘‘(b)(1)(H)’’ and inserting ‘‘(b)(1)(C)(vii)’’; 

12 and 

13 (ii) in subparagraph (C), by striking 

14 ‘‘lead representative of each agency rep15 resented on the Council’’ and inserting 

16 ‘‘members of the Council’’; and 

17 (4) in subsection (d)— 

18 (A) by striking ‘‘The Council’’ and insert19 ing the following: 

20 ‘‘(1) COUNCIL MEETINGS.—The Council’’; and 

21 (B) by adding at the end the following: 

22 ‘‘(2) OTHER MEETINGS.—The Chairperson of 

23 the Council shall meet, not less frequently than 

24 semiannually, with— 


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1 ‘‘(A) the Secretary of Homeland Security, 

2 the Secretary of Defense, and the Director of 

3 National Intelligence; or 

4 ‘‘(B) in the case that any of the officials 

5 under subparagraph (A) delegated authority to 

6 an official under section 1323(c)(6)(C), with 

7 the delegated official.’’. 

8 (c) FUNCTIONS AND AUTHORITIES.—Section 1323 of 

9 title 41, United States Code, is amended— 

10 (1) in subsection (a)— 

11 (A) by striking ‘‘supply chain’’ each place 

12 it appears and inserting ‘‘acquisition security 

13 and supply chain’’; 

14 (B) in paragraph (1), as amended by sub15 paragraph (A), by striking ‘‘, particularly’’ and 

16 inserting ‘‘that arise’’; 

17 (C) in paragraph (2), as amended by sub18 paragraph (A), by inserting ‘‘associated with 

19 the acquisition and use of covered articles’’ 

20 after ‘‘risk’’; 

21 (D) in paragraph (6)— 

22 (i) by striking ‘‘posed by’’ and insert23 ing ‘‘associated with’’; and 

24 (ii) by inserting ‘‘and use’’ before ‘‘of 

25 covered articles’’; 


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1 (E) by redesignating paragraph (7) as 

2 paragraph (12); 

3 (F) in paragraph (12), as redesignated by 

4 subparagraph (E), by striking ‘‘posed by acqui5 sitions’’ and inserting ‘‘associated with the ac6 quisition’’; and 

7 (G) by inserting after paragraph (6) the 

8 following new paragraphs: 

9 ‘‘(7) Implementing a prioritization scheme for 

10 evaluating the security risks associated with the ac11 quisition and use of covered articles provided or pro12 duced by a covered source of concern. 

13 ‘‘(8) Evaluating each covered source of concern 

14 to determine whether to issue a designated order 

15 with respect to the covered source of concern or a 

16 covered article produced or provided by the covered 

17 source of concern. 

18 ‘‘(9) Evaluating sources of concern to determine 

19 whether to issue a recommended order with respect 

20 to the source of concern, or any covered article pro21 duced or provided by the source of concern. 

22 ‘‘(10) Monitoring the issuance of designated or23 ders under subsection (c)(6)(B), as required, by the 

24 Secretary of Homeland Security, the Secretary of 

25 Defense, and the Director of National Intelligence 


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1 with the requirement to issue designated orders 

2 under subsection (c)(6)(B) and providing technical 

3 assistance to those agencies on compliance matters. 

4 ‘‘(11) Reporting to Congress annually on the 

5 security risks associated with the acquisition and use 

6 of covered articles produced or provided by sources 

7 of concern.’’; 

8 (2) in subsection (b)— 

9 (A) by striking ‘‘The Council’’ and insert10 ing the following: 

11 ‘‘(1) IN GENERAL.—The Council’’; and 

12 (B) in paragraph (1), as so redesignated, 

13 by striking ‘‘a program office and’’; and 

14 (C) by adding at the end the following new 

15 paragraph: 

16 ‘‘(2) FEDERAL ACQUISITION SECURITY COUNCIL

17 PROGRAM OFFICE.— 

18 ‘‘(A) ESTABLISHMENT.—The Council shall 

19 establish a Federal Acquisition Security Council 

20 Program Office (referred to in this paragraph 

21 as the ‘Program Office’) within the Office of 

22 the National Cyber Director to carry out the 

23 functions of the Council duties described under 

24 subparagraph (B). 


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1 ‘‘(B) DUTIES.—The Program Office shall 

2 provide to the Council and any committees, 

3 working groups, or other constituent bodies es4 tablished by the Council under paragraph (1)— 

5 ‘‘(i) administrative, legal, and policy 

6 support; and 

7 ‘‘(ii) analysis and subject matter ex8 pertise on information communications 

9 technology, acquisition security, and supply 

10 chain risk. 

11 ‘‘(C) STRUCTURE.—The head of the Pro12 gram Office shall be a senior official from the 

13 Office of the National Cyber Director that occu14 pies a position at the level of Assistant Sec15 retary or Deputy Assistant Secretary (or equiv16 alent). 

17 ‘‘(D) PROHIBITION.—The Program Office 

18 may not provide administrative support to the 

19 Council for any activities of the Council carried 

20 out pursuant to a provision of law other than 

21 a provision of law under this subchapter. 

22 ‘‘(E) FUNDING AND RESOURCES.—The 

23 Program Office may use the staff and resources 

24 of the Office of the National Cyber Director or 

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1 propriate, in the performance of the duties of 

2 the Office. 

3 ‘‘(F) SHARED STAFFING AUTHORITY.— 

4 ‘‘(i) IN GENERAL.—The Program Of5 fice may accept officers or employees of 

6 the United States or members of the 

7 Armed Forces on a detail from an element 

8 of the intelligence community (as such 

9 term is defined in section 3 of the National 

10 Security Act of 1947 (50 U.S.C. 3003)) or 

11 from another element of the Federal Gov12 ernment on a nonreimbursable basis, as 

13 jointly agreed to by the heads of the receiv14 ing and detailing elements, for a period not 

15 to exceed three years. 

16 ‘‘(ii) RULE OF CONSTRUCTION.— 

17 Nothing in this subparagraph may be con18 strued as imposing any limitation on any 

19 other authority for reimbursable or nonre20 imbursable details. 

21 ‘‘(iii) NONREIMBURSABLE DETAIL.—A 

22 nonreimbursable detail made under this 

23 subparagraph shall not be considered an 

24 augmentation of the appropriations of the 


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1 receiving element of the Program Office or 

2 the Office of the National Cyber Director. 

3 ‘‘(G) SUNSET.—The Program Office shall 

4 terminate on the date described under section 

5 1328.’’; 

6 (3) in subsection (c)— 

7 (A) in paragraph (1)— 

8 (i) in the matter preceding subpara9 graph (A), by striking ‘‘supply chain risk’’ 

10 and inserting ‘‘acquisition security and 

11 supply chain risk associated with the ac12 quisition of covered articles’’; 

13 (ii) in subparagraph (A), by inserting 

14 ‘‘recommended’’ before ‘‘exclusion orders’’; 

15 (iii) in subparagraph (B), by inserting 

16 ‘‘recommended’’ before ‘‘removal orders’’; 

17 (iv) in subparagraph (C), by striking 

18 ‘‘; and’’ and inserting a semicolon; 

19 (v) in subparagraph (D), by striking 

20 the period at the end and inserting ‘‘; 

21 and’’; and 

22 (vi) by adding at the end the following 

23 new subparagraph: 

24 ‘‘(E) issuing designated orders.’’; 

25 (B) in paragraph (2)— 


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1 (i) in the heading, by striking ‘‘REC2 OMMENDATIONS’’ and inserting ‘‘REC3 OMMENDED ORDERS’’; 

4 (ii) by striking ‘‘use’’ and inserting ‘‘, 

5 using’’; 

6 (iii) by striking ‘‘subsection (a)(3)’’ 

7 and inserting ‘‘subsection (a)(4)’’; 

8 (iv) by striking ‘‘recommendations’’ 

9 and inserting ‘‘recommend orders’’; 

10 (v) by inserting ‘‘to the officials de11 scribed under clause (iii) of paragraph 

12 (6)(A) for issuance under such paragraph’’ 

13 after ‘‘thereof,’’; 

14 (vi) by striking ‘‘Such recommenda15 tions’’ and inserting ‘‘Any such order rec16 ommended’’; 

17 (vii) in subparagraph (D), by striking 

18 ‘‘supply chain risk’’ and inserting ‘‘acquisi19 tion security and supply chain risk associ20 ated with the acquisition of covered arti21 cles’’; and 

22 (viii) in subparagraph (E), by striking 

23 ‘‘exclusion or removal’’; 

24 (C) by redesignating paragraphs (3) 

25 through (7) as paragraphs (4) through (8); 


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1 (D) by inserting after paragraph (2) the 

2 following new paragraph: 

3 ‘‘(3) DESIGNATED ORDERS.— 

4 ‘‘(A) EXCLUSION OR REMOVAL OF COV5 ERED SOURCES OF CONCERN.— 

6 ‘‘(i) IN GENERAL.—Not later than 

7 270 days after a source of concern is des8 ignated as a covered source of concern pur9 suant to paragraph (2), the Council— 

10 ‘‘(I) shall provide to the officials 

11 described under clause (iii) of para12 graph (6)(B) for issuance under such 

13 paragraph orders requiring— 

14 ‘‘(aa) the exclusion of the 

15 covered source of concern from 

16 any executive agency procure17 ment action, including source se18 lection and consent for a con19 tractor; or 

20 ‘‘(bb) the removal of covered 

21 articles produced or provided by 

22 the covered source of concern 

23 from the information system of 

24 executive agencies; or 


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1 ‘‘(II) report to Congress why the 

2 Council has determined to not issue 

3 an order described under subclause (I) 

4 with respect to the covered source of 

5 concern or covered articles produced 

6 or provided by the covered source of 

7 concern. 

8 ‘‘(ii) CONTENTS OF ORDER.—Any 

9 order provided under clause (i) shall in10 clude— 

11 ‘‘(I) information regarding the 

12 scope and applicability of the order, 

13 including any information necessary 

14 to positively identify the covered 

15 source of concern or covered articles 

16 produced or provided by the covered 

17 source of concern required to be ex18 cluded or removed under the order; 

19 ‘‘(II) a summary of any risk as20 sessment reviewed or conducted in 

21 support of the order; 

22 ‘‘(III) a summary of the basis for 

23 the order, including a discussion of 

24 less intrusive measures that were con25 sidered and why such measures were 


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1 not reasonably available to reduce se2 curity risk; 

3 ‘‘(IV) a description of the actions 

4 necessary to implement the order; and 

5 ‘‘(V) where practicable, in the 

6 Council’s sole and unreviewable dis7 cretion, a description of mitigation 

8 steps that could be taken by the cov9 ered source of concern that may result 

10 in the Council rescinding the order. 

11 ‘‘(B) EXCLUSION OR REMOVAL OF SECOND

12 ORDER SOURCES OR COVERED ARTICLES.— 

13 ‘‘(i) ISSUANCE.—In the case that the 

14 Council provides an order under subpara15 graph (A), the Council may also provide an 

16 order to the officials described under para17 graph (6)(A)(iii) requiring the exclusion of 

18 sources or covered articles from executive 

19 agency procurement actions or removal of 

20 covered articles from executive agency in21 formation systems if— 

22 ‘‘(I) such covered articles or such 

23 sources use a covered source of con24 cern in the performance of a contract 

25 with the executive agency; or 


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1 ‘‘(II) such sources enter into a 

2 contract, the performance of which 

3 such source knows or has reason to 

4 believe will require, in the perform5 ance of a contract with the executive 

6 agency, the use of a covered source of 

7 concern or the use of a covered article 

8 produced or provided by a covered 

9 source of concern. 

10 ‘‘(ii) EFFECTIVE DATE CONSIDER11 ATIONS.—Any effective date prescribed by 

12 the Council for an order issued pursuant 

13 to clause (i) shall take into account— 

14 ‘‘(I) the risk posed by the covered 

15 source of concern or the covered arti16 cle produced or provided by the cov17 ered source of concern to the national 

18 security of the United States; 

19 ‘‘(II) the likelihood of the covered 

20 source of concern or the covered arti21 cle produced or provided by the cov22 ered source of concern causing immi23 nent threat to public health and safe24 ty; 


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1 ‘‘(III) the availability of an alter2 native source or covered article pro3 duced or provided by an alternative 

4 source; and 

5 ‘‘(IV) an assessment of the po6 tential direct or quantifiable costs 

7 that may be incurred by the Federal 

8 Government, a State, local, or Tribal 

9 government, or by the private sector, 

10 as a result of compliance by the head 

11 of an executive agency with such an 

12 exclusion or removal order, as nec13 essary.’’; 

14 (E) in paragraph (4), as so redesignated— 

15 (i) in the paragraph heading, by strik16 ing ‘‘OF RECOMMENDATION AND REVIEW’’ 

17 and inserting ‘‘AND REVIEW OF REC18 OMMENDED AND DESIGNATED ORDERS’’; 

19 (ii) by striking ‘‘ the recommenda20 tion’’ each place it appears, and inserting 

21 ‘‘ the order’’; 

22 (iii) in the matter preceding subpara23 graph (A), by striking ‘‘A notice of the 

24 Council’s recommendation under para25 graph (2)’’ and inserting ‘‘Before the 


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1 Council recommends an order under para2 graph (2) or issues an order under para3 graph (3), a notice’’; 

4 (iv) in subparagraph (A), by striking 

5 ‘‘a recommendation has been made’’ and 

6 inserting ‘‘the order will be recommended 

7 or issued’’; 

8 (v) in subparagraph (D), by striking 

9 ‘‘paragraph (5); and’’ and inserting ‘‘para10 graph (6);’’; 

11 (vi) in subparagraph (E), by striking 

12 the period at the end and inserting ‘‘; 

13 and’’; and 

14 (vii) by adding at the end the fol15 lowing new subparagraph: 

16 ‘‘(F) Until an order is issued pursuant to 

17 paragraph (6), information collected under this 

18 paragraph shall be exempt from public disclo19 sure and shall be treated as information de20 scribed in section 552(b)(3) of title 5, United 

21 States Code (commonly referred to as the 

22 ‘Freedom of Information Act’).’’; 

23 (F) in paragraph (5), as so redesignated— 

24 (i) by striking ‘‘paragraph (3)’’ and 

25 inserting ‘‘paragraph (4)’’; 


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1 (ii) in subparagraph (A), by striking 

2 ‘‘paragraph (5)’’ and inserting ‘‘paragraph 

3 (6)’’; and 

4 (iii) in subparagraph (B), by striking 

5 ‘‘paragraph (6)’’ and inserting ‘‘paragraph 

6 (7)’’; 

7 (G) in paragraph (6), as so redesignated— 

8 (i) by amending subparagraph (A) to 

9 read as follows: 

10 ‘‘(A) ISSUANCE OF RECOMMENDED OR11 DERS.— 

12 ‘‘(i) MODIFICATIONS TO ORDER.— 

13 After considering any response properly 

14 submitted by a source under paragraph (4) 

15 related to an order to be recommended 

16 under paragraph (2), the Council shall— 

17 ‘‘(I) make such modifications to 

18 the order as the Council considers ap19 propriate; and 

20 ‘‘(II) provide the order (together 

21 with any information submitted by a 

22 source under paragraph (4) related to 

23 such order) to the officials described 

24 under clause (iii). 


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1 ‘‘(ii) ORDER.—Not later than 90 days 

2 after receiving a recommended order, the 

3 officials described under clause (iii) shall— 

4 ‘‘(I) issue the order to the heads 

5 of the applicable agencies; or 

6 ‘‘(II) submit a notification to the 

7 Council that the order will not be 

8 issued, that includes in the notifica9 tion to the Council, all the reasons for 

10 why the order will not be issued. 

11 ‘‘(iii) OFFICIALS.—The officials de12 scribed in this clause are as follows: 

13 ‘‘(I) The Secretary of Homeland 

14 Security, for exclusion and removal 

15 orders applicable to civilian agencies, 

16 to the extent not covered by subclause 

17 (II) or (III). 

18 ‘‘(II) The Secretary of Defense, 

19 for exclusion and removal orders ap20 plicable to the Department of Defense 

21 and national security systems other 

22 than sensitive compartmented infor23 mation systems. 

24 ‘‘(III) The Director of National 

25 Intelligence, for exclusion and removal 


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1 orders applicable to the intelligence 

2 community and sensitive compart3 mented information systems, to the 

4 extent not covered by subclause (II).’’; 

5 (ii) by redesignating subparagraphs 

6 (B) through (E) as subparagraphs (C) 

7 through (F), respectively; 

8 (iii) by inserting after subparagraph 

9 (A) the following new subparagraph: 

10 ‘‘(B) ISSUANCE OF DESIGNATED ORDER.— 

11 ‘‘(i) MODIFICATIONS.—After consid12 ering any response properly submitted by a 

13 source under paragraph (4) related to a 

14 designated order, the Council shall— 

15 ‘‘(I)(aa) make any such modifica16 tions to the order as the Council con17 siders appropriate; or 

18 ‘‘(bb) if the Council determines 

19 that the issuance of a designated 

20 order is not warranted, rescind the 

21 designated order and notify the source 

22 of the rescission; and 

23 ‘‘(II) except in the case that the 

24 Council rescinds the designated order 

25 under subclause (I)(bb), provide the 


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1 designated order (including any modi2 fications made to such order by the 

3 Council) to the officials described in 

4 clause (iii). 

5 ‘‘(ii) ISSUANCE.—The officials de6 scribed in clause (iii) shall, not later than 

7 90 days after receiving a designated order, 

8 issue the order to the heads of the applica9 ble agencies. 

10 ‘‘(iii) OFFICIALS.—The officials de11 scribed in this clause are as follows: 

12 ‘‘(I) The Secretary of Homeland 

13 Security, for exclusion and removal 

14 orders applicable to civilian agencies, 

15 to the extent not covered by subclause 

16 (II) or (III). 

17 ‘‘(II) The Secretary of Defense, 

18 for exclusion and removal orders ap19 plicable to the Department of Defense 

20 and national security systems other 

21 than sensitive compartmented infor22 mation systems. 

23 ‘‘(III) The Director of National 

24 Intelligence, for exclusion and removal 

25 orders applicable to the intelligence 


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1 community and sensitive compart2 mented information systems, to the 

3 extent not covered by subclause (II). 

4 ‘‘(iv) WAIVER.—An official described 

5 under clause (iii) may waive for a period of 

6 not more than 365 days the application of 

7 an order issued by such official under 

8 clause (ii) with respect to a covered source 

9 of concern or a covered article produced or 

10 provided by a covered source of concern if 

11 the official submits, not later than 30 days 

12 after making such waiver, a written notifi13 cation to the Council, the appropriate con14 gressional committees, and leadership that 

15 contains the justification for such waiver, 

16 which may include a classified annex. 

17 ‘‘(v) RENEWAL OF WAIVER.—An offi18 cial described under clause (iii) may renew 

19 a waiver under clause (iv) for an additional 

20 period of not more than 365 days if— 

21 ‘‘(I) the renewal of the waiver is 

22 in the national security interests of 

23 the United States; and 

24 ‘‘(II) the official submits, not 

25 later than 30 days after renewing 


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1 such waiver, a written notification to 

2 the Council, the appropriate congres3 sional committees, and leadership that 

4 includes the justification for renewing 

5 the wavier. 

6 ‘‘(vi) NATIONAL SECURITY WAIVER.— 

7 An official described under clause (iii) may 

8 waive the application of an order issued by 

9 such official under clause (ii) with respect 

10 to a covered source of concern or a covered 

11 article produced or provided by a covered 

12 source of concern for any activity subject 

13 to the reporting requirements under title V 

14 of the National Security Act of 1947 (50 

15 U.S.C. 3091 et seq.) or any authorized in16 telligence activities of the United States. 

17 ‘‘(vii) RESCISSION OF ORDER.—An ex18 clusion or removal order issued under this 

19 subparagraph by an official may be re20 scinded only by the Council.’’; 

21 (iv) in subparagraph (C), as so redes22 ignated— 

23 (I) by striking ‘‘subparagraph 

24 (A)’’ and inserting ‘‘subparagraph 

25 (A)(iii) or (B)(iii)’’; 


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1 (II) by striking ‘‘this subpara2 graph’’ and inserting ‘‘subparagraph 

3 (A)(iii) or (B)(iii)’’; and 

4 (III) by striking ‘‘, except’’ and 

5 all that follows through ‘‘Deputy 

6 Commander’’; 

7 (v) in subparagraph (D), as so redes8 ignated— 

9 (I) by striking ‘‘this paragraph’’ 

10 and inserting ‘‘subparagraph (A)(iii) 

11 or (B)(iii)’’; and 

12 (II) by striking ‘‘help’’; 

13 (vi) in subparagraph (E), as so redes14 ignated, by striking ‘‘this paragraph’’ and 

15 inserting ‘‘subparagraph (A)’’; and 

16 (vii) by adding after subparagraph 

17 (F), as so redesignated, the following new 

18 subparagraph: 

19 ‘‘(G) EFFECTIVE DATE OF ORDERS.—The 

20 effective date of an order issued under this 

21 paragraph may not be more than one year after 

22 the order is issued.’’; 

23 (H) in paragraph (7), as so redesignated, 

24 by striking ‘‘paragraph (5)(A)’’ and inserting 


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1 ‘‘subparagraph (A) or (B) of paragraph (6)’’; 

2 and 

3 (I) in paragraph (8), as so redesignated, 

4 by striking ‘‘paragraph (5)’’ and inserting 

5 ‘‘paragraph (6)’’; 

6 (4) in subsection (e), by inserting ‘‘the Chief 

7 Data Officers Council,’’ before ‘‘the Chief Acquisi8 tion’’; and 

9 (5) in subsection (f)(2), by striking the period 

10 at the end and inserting ‘‘unless such source is spe11 cifically designated by statute as a covered source of 

12 concern for the purposes of this subchapter.’’. 

13 (d) STRATEGIC PLAN.—Section 1324(a) of title 41, 

14 United States Code, is amended— 

15 (1) by inserting ‘‘, and periodically thereafter’’ 

16 after ‘‘2018’’; 

17 (2) in the matter preceding paragraph (1), by 

18 inserting ‘‘acquisition security and’’ before ‘‘supply 

19 chain risks’’; 

20 (3) in paragraph (8), by inserting ‘‘acquisition 

21 security and’’ before ‘‘supply chain risks’’; and 

22 (4) in paragraph (9)(A), by inserting ‘‘acquisi23 tion security and’’ before ‘‘supply chain risk’’. 


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1 (e) REQUIREMENTS FOR EXECUTIVE AGENCIES.— 

2 Section 1326 of title 41, United States Code, is amend3 ed— 

4 (1) by striking ‘‘supply chain’’ each place such 

5 term appears and inserting ‘‘security and supply 

6 chain’’; 

7 (2) in subsection (a)— 

8 (A) in paragraph (1), by striking ‘‘; and’’ 

9 and inserting a semicolon; 

10 (B) in paragraph (2), by striking the pe11 riod at the end and inserting ‘‘; and’’; and 

12 (C) by adding at the end the following: 

13 ‘‘(3) providing any information requested by the 

14 Chairperson of the Council for the purpose of car15 rying out activities of this subchapter, subject to ap16 plicable law or policy on control and handling of 

17 classified, sensitive, or proprietary information.’’; 

18 and 

19 (3) in subsection (b)(6), by striking ‘‘may pose’’ 

20 and all that follows through ‘‘risk’’ and inserting 

21 ‘‘may pose a security or supply chain risk’’. 

22 (f) JUDICIAL PROCEDURE.—Section 1327(b) of title 

23 41, United States Code, is amended— 

24 (1) in paragraph (1), by striking ‘‘section 

25 1323(c)(6)’’ and inserting ‘‘section 1323(c)(7)’’; 


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1 (2) in paragraph (3), by striking ‘‘sections 

2 1323(c)(5)’’ and inserting ‘‘sections 1323(c)(6)’’; 

3 and 

4 (3) in paragraph (4), by amending subpara5 graph (B)(i) to read as follows: 

6 ‘‘(i) FILING OF RECORD.—The United 

7 States shall file with the court an adminis8 trative record, which shall consist of— 

9 ‘‘(I) the information the Council 

10 relied upon in issuing a designated 

11 order under section 1323(c)(6); and 

12 ‘‘(II) the information that the ap13 propriate official relied upon in 

14 issuing an exclusion or removal order 

15 under section 1323(c)(6) or a covered 

16 procurement action under section 

17 4713.’’. 

18 (g) ADDITIONAL PROVISIONS.—Subchapter III of 

19 chapter 13 of title 41, United States Code, is amended 

20 by adding at the end the following new section: 

21 ‘‘§ 1329. Additional provisions 

22 ‘‘(a) COMPLIANCE WITH EXISTING PROHIBITIONS.— 

23 In implementing this subchapter, the Council shall coordi24 nate, as applicable and practicable, with the head of an 

25 agency to assist with compliance by the agency with— 


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1 ‘‘(1) section 889 of the John S. McCain Na2 tional Defense Authorization Act of 2019 (Public 

3 Law 115–232; 41 U.S.C. 3901 note); 

4 ‘‘(2) section 5949 of the James M. Inhofe Na5 tional Defense Authorization Act of 2023 (Public 

6 Law 117–263; 41 U.S.C. 4713 note); and 

7 ‘‘(3) sections 1821 through 1833 of the Amer8 ican Security Drone Act of 2023 (Public Law 118– 

9 31). 

10 ‘‘(b) UPDATE TO REGULATIONS.—Not later than two 

11 years after the date of the enactment of this section, the 

12 Federal Acquisition Security Council shall update any reg13 ulations the Council determines necessary.’’. 

14 (h) TECHNICAL AND CONFORMING CHANGES.—Sub15 chapter III of chapter 13 of title 41, United States Code, 

16 is amended— 

17 (1) in the table of sections for the subchapter 

18 by adding after the item related to section 1328 the 

19 following: 

‘‘1329. Additional provisions.’’; 

20 (2) in section 1321(1)(B), by striking ‘‘Govern21 ment Reform’’ and inserting ‘‘Accountability’’; and 

22 (3) by striking ‘‘of this title’’ each place the 

23 term appears. 


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1 SEC. 3. REALLOCATING EXISTING RESOURCES. 

2 Section 5949(l) of the James M. Inhofe National De3 fense Authorization Act for Fiscal Year 2023 (Public Law 

4 117–263) is amended— 

5 (1) in paragraph (1), by striking ‘‘Office of 

6 Management and Budget’’ and inserting ‘‘Office of 

7 the National Cyber Director’’; and 

8 (2) in paragraph (2), by striking ‘‘Office of 

9 Management and Budget’’ and inserting ‘‘Office of 

10 the National Cyber Director’’. 

11 SECTION 1. SHORT TITLE. 

12 This Act may be cited as the ‘‘Federal Acquisition Se13 curity Council Improvement Act of 2024’’. 

14 SEC. 2. CHANGES WITH RESPECT TO THE FEDERAL ACQUI15 SITION SECURITY COUNCIL. 

16 (a) DEFINITION OF SOURCE OF CONCERN, COVERED

17 SOURCE OF CONCERN, RECOMMENDED ORDER, AND DES18 IGNATED ORDER.—Section 1321 of title 41, United States 

19 Code, is amended— 

20 (1) by redesignating paragraphs (5) through (8) 

21 as paragraphs (7) through (10); 

22 (2) by inserting after paragraph (4) the fol23 lowing: 

24 ‘‘(5) COVERED SOURCE OF CONCERN.—The term 

25 ‘covered source of concern’ means a source of concern 

26 that is specifically designated as a ‘covered source of 


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1 concern’ by a statute that states that such designation 

2 is for the purposes of this subchapter. 

3 ‘‘(6) DESIGNATED ORDER.—The term ‘designated 

4 order’ means an order described under section 

5 1323(c)(3).’’; and 

6 (3) by adding at the end the following: 

7 ‘‘(11) RECOMMENDED ORDER.—The term ‘rec8 ommended order’ means an order recommended under 

9 section 1323(c)(2). 

10 ‘‘(12) SOURCE OF CONCERN.— 

11 ‘‘(A) IN GENERAL.—The term ‘source of 

12 concern’ means a source— 

13 ‘‘(i) subject to the jurisdiction, direc14 tion, or control of the government of a for15 eign adversary, or operates on behalf of the 

16 government of a foreign adversary; or 

17 ‘‘(ii) that poses a risk to the national 

18 security of the United States based on col19 laboration with, whole or partial ownership 

20 or control by, or being affiliated with a 

21 military, internal security force, or intel22 ligence agency of a foreign adversary. 

23 ‘‘(B) FOREIGN ADVERSARY DEFINED.—In 

24 this paragraph, the term ‘foreign adversary’ has 


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1 the meaning given the term ‘covered nation’ in 

2 section 4872(d) of title 10.’’. 

3 (b) ESTABLISHMENT AND MEMBERS OF COUNCIL.— 

4 Section 1322 of title 41, United States Code, is amended— 

5 (1) in subsection (a), by striking ‘‘executive 

6 branch’’ and inserting ‘‘Executive Office of the Presi7 dent’’; 

8 (2) in subsection (b)— 

9 (A) by amending paragraph (1) to read as 

10 follows: 

11 ‘‘(1) IN GENERAL.—The members of the Council 

12 shall be as follows: 

13 ‘‘(A) The Administrator for Federal Pro14 curement Policy. 

15 ‘‘(B) The Deputy Director for Management 

16 of the Office of Management and Budget. 

17 ‘‘(C) The following officials, each of whom 

18 shall occupy a position at the level of Assistant 

19 Secretary or Deputy Assistant Secretary (or 

20 equivalent): 

21 ‘‘(i) Two officials from the Office of the 

22 Director of National Intelligence, one of 

23 which shall be from the National Counter24 intelligence and Security Center. 


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1 ‘‘(ii) Two officials from the Depart2 ment of Defense, one of which shall be one 

3 from the National Security Agency. 

4 ‘‘(iii) Two officials from the Depart5 ment of Homeland Security, one of which 

6 shall be one from the Cybersecurity and In7 frastructure Security Agency. 

8 ‘‘(iv) An official from the General 

9 Services Administration. 

10 ‘‘(v) An official from the Office of the 

11 National Cyber Director. 

12 ‘‘(vi) Two officials from the Depart13 ment of Justice, one of which shall be one 

14 from the Federal Bureau of Investigation. 

15 ‘‘(vii) Two officials from the Depart16 ment of Commerce, one of which shall be 

17 from the National Institute of Standards 

18 and Technology and one of which shall be 

19 from the Bureau of Industry and Security. 

20 ‘‘(viii) An official from any executive 

21 agency not listed under clauses (i) through 

22 (vii) whose temporary or permanent par23 ticipation is determined by the Chairperson 

24 of the Council to be necessary to carry out 

25 the functions of the Council while maintainVerDate Sep 11 2014 03:19 Dec 17, 2024 Jkt 059200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6203 E:\BILLS\S5310.RS S5310

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1 ing the intended balance in subject matter 

2 expertise.’’; and 

3 (B) in paragraph (2)— 

4 (i) in the heading, by striking ‘‘LEAD

5 REPRESENTATIVES’’ and inserting ‘‘MEM6 BERS’’; 

7 (ii) by amending subparagraph (A)(i) 

8 to read as follows: 

9 ‘‘(i) IN GENERAL.—The head of each 

10 executive agency listed under paragraph 

11 (1)(C) shall designate the official or officials 

12 from that agency who shall serve on the 

13 Council in accordance with such para14 graph.’’; 

15 (iii) by amending subparagraph 

16 (A)(ii) to read as follows: 

17 ‘‘(ii) REQUIREMENTS.—To the extent 

18 feasible, any official designated under clause 

19 (i) shall have expertise in supply chain risk 

20 management, acquisitions, law, or informa21 tion and communications technology.’’; 

22 (iv) by amending subparagraph (B) to 

23 read as follows: 

24 ‘‘(B) FUNCTIONS.—A member of the Council 

25 shall— 


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1 ‘‘(i) regularly participate in the activi2 ties of the Council; 

3 ‘‘(ii) ensure that any information re4 quested by the Council from the agency rep5 resented by the member is provided to the 

6 Council; and 

7 ‘‘(iii) ensure that the head of the agen8 cy represented by the member and other ap9 propriate personnel of the agency are aware 

10 of the activities of the Council.’’; 

11 (3) in subsection (c)— 

12 (A) by amending paragraph (1) to read as 

13 follows: 

14 ‘‘(1) IN GENERAL.—The Chairperson of the 

15 Council shall be— 

16 ‘‘(A) the National Cyber Director; or 

17 ‘‘(B) another member of the Council des18 ignated by the National Cyber Director.’’; and 

19 (B) in paragraph (2)— 

20 (i) in subparagraph (B), by striking 

21 ‘‘(b)(1)(H)’’ and inserting ‘‘(b)(1)(C)(viii)’’; 

22 and 

23 (ii) in subparagraph (C), by striking 

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1 resented on the Council’’ and inserting 

2 ‘‘members of the Council’’; and 

3 (4) in subsection (d)— 

4 (A) by striking ‘‘The Council’’ and insert5 ing the following: 

6 ‘‘(1) COUNCIL MEETINGS.—The Council’’; and 

7 (B) by adding at the end the following: 

8 ‘‘(2) OTHER MEETINGS.—The Chairperson of the 

9 Council shall meet, not less frequently than semiannu10 ally, with— 

11 ‘‘(A) the Secretary of Homeland Security, 

12 Secretary of Defense, and Director of National 

13 Intelligence; or 

14 ‘‘(B) in the case that any of the officials 

15 under subparagraph (A) delegated authority to 

16 an official under section 1323(c)(6)(C), with the 

17 delegated official.’’. 

18 (c) FUNCTIONS AND AUTHORITIES.—Section 1323 of 

19 title 41, United States Code is amended— 

20 (1) in subsection (a)— 

21 (A) by striking ‘‘supply chain’’ each place 

22 it appears and inserting ‘‘acquisition security 

23 and supply chain’’; 


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1 (B) in paragraph (1), as amended by sub2 paragraph (A), by striking ‘‘, particularly’’ and 

3 inserting ‘‘that arise’’; 

4 (C) in paragraph (2), as amended by sub5 paragraph (A), by inserting ‘‘associated with the 

6 acquisition and use of covered articles’’ after 

7 ‘‘risk’’; 

8 (D) in paragraph (6), as amended by sub9 paragraph (A)— 

10 (i) by striking ‘‘posed by’’ and insert11 ing ‘‘associated with’’; and 

12 (ii) by inserting ‘‘and use’’ before ‘‘of 

13 covered articles’’; 

14 (E) in paragraph (7), by striking ‘‘posed by 

15 acquisitions’’ and inserting ‘‘associated with the 

16 acquisition’’; 

17 (F) by redesignating paragraph (7) as 

18 paragraph (12); and 

19 (G) by inserting after paragraph (6) the fol20 lowing: 

21 ‘‘(7) Implementing a prioritization scheme for 

22 evaluating the security risks associated with the ac23 quisition and use of covered articles provided or pro24 duced by a covered source of concern. 


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1 ‘‘(8) Evaluating each covered source of concern 

2 to determine whether to issue a designated order with 

3 respect to the covered source of concern or a covered 

4 article produced or provided by the covered source of 

5 concern. 

6 ‘‘(9) Evaluating sources of concern to determine 

7 whether to issue a recommended order with respect to 

8 the source of concern, or any covered article produced 

9 or provided by the source of concern. 

10 ‘‘(10) Monitoring and evaluating compliance by 

11 the Secretary of Homeland Security, Secretary of De12 fense, and Director of National Intelligence with the 

13 requirement to issue designated orders under sub14 section (c)(6)(B). 

15 ‘‘(11) Reporting to Congress annually on the se16 curity risks associated with the acquisition and use of 

17 covered articles produced or provided by sources of 

18 concern.’’; 

19 (2) in subsection (b)— 

20 (A) by striking ‘‘The Council’’ and insert21 ing the following: 

22 ‘‘(1) IN GENERAL.—The Council’’; and 

23 (B) in paragraph (1), as so redesignated, by 

24 striking ‘‘a program office and’’; and 

25 (C) by adding at the end the following: 


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1 ‘‘(2) FEDERAL ACQUISITION SECURITY COUNCIL

2 PROGRAM OFFICE.— 

3 ‘‘(A) ESTABLISHMENT.—The Council shall 

4 establish a Federal Acquisition Security Council 

5 Program Office (referred to in this paragraph as 

6 the ‘Program Office’) within the Office of the Na7 tional Cyber Director to carry out the functions 

8 of the Council duties described under subpara9 graph (B). 

10 ‘‘(B) DUTIES.—The Program Office shall 

11 provide to the Council, including any commit12 tees, working groups, or other constituent bodies 

13 established by the Council under paragraph 

14 (1)— 

15 ‘‘(i) administrative, legal, and policy 

16 support; and 

17 ‘‘(ii) analysis and subject matter ex18 pertise on information communications 

19 technology, acquisition security, and supply 

20 chain risk. 

21 ‘‘(C) STRUCTURE.—The head of the Pro22 gram Office shall be a senior official from the Of23 fice of the National Cyber Director that occupies 

24 a position at the level of Assistant Secretary or 

25 Deputy Assistant Secretary (or equivalent). 


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1 ‘‘(D) PROHIBITION.—The Program Office 

2 may not provide administrative support to the 

3 Council for any activities of the Council carried 

4 out pursuant to a provision of law other than a 

5 provision of law under this subchapter. 

6 ‘‘(E) FUNDING AND RESOURCES.—The Pro7 gram Office may use the staff and resources of 

8 the Office of the National Cyber Director or 

9 maintain dedicated staff and resources, as ap10 propriate, in the performance of the duties of the 

11 Office. 

12 ‘‘(F) SHARED STAFFING AUTHORITY.— 

13 ‘‘(i) IN GENERAL.—The Program Of14 fice may accept officers or employees of the 

15 United States or members of the Armed 

16 Forces on a detail from an element of the 

17 intelligence community (as such term is de18 fined in section 3 of the National Security 

19 Act of 1947 (50 U.S.C. 3003)) or from an20 other element of the Federal Government on 

21 a nonreimbursable basis, as jointly agreed 

22 to by the heads of the receiving and detail23 ing elements, for a period not to exceed 

24 three years. 


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1 ‘‘(ii) RULE OF CONSTRUCTION.—Noth2 ing in this subparagraph may be construed 

3 as imposing any limitation on any other 

4 authority for reimbursable or nonreimburs5 able details. 

6 ‘‘(iii) NONREIMBURSABLE DETAIL.—A 

7 nonreimbursable detail made under this 

8 subparagraph shall not be considered an 

9 augmentation of the appropriations of the 

10 receiving element of the Program Office or 

11 the Office of the National Cyber Director. 

12 ‘‘(G) SUNSET.—The Program Office shall 

13 terminate on the date described under section 

14 1328.’’; 

15 (3) in subsection (c)— 

16 (A) in paragraph (1)— 

17 (i) in the matter preceding subpara18 graph (A), by striking ‘‘supply chain risk’’ 

19 and inserting ‘‘acquisition security and 

20 supply chain risk associated with the acqui21 sition of covered articles’’; 

22 (ii) in subparagraph (A), by inserting 

23 ‘‘recommended’’ before ‘‘exclusion orders’’; 

24 (iii) in subparagraph (B), by inserting 

25 ‘‘recommended’’ before ‘‘removal orders’’; 


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1 (iv) in subparagraph (C), by striking 

2 ‘‘; and’’ and inserting a semicolon; 

3 (v) in subparagraph (D), by striking 

4 the period at the end and inserting ‘‘; and’’; 

5 and 

6 (vi) by adding at the end the following: 

7 ‘‘(E) issuing designated orders.’’; 

8 (B) in paragraph (2)— 

9 (i) in the heading, by striking ‘‘REC10 OMMENDATIONS’’ and inserting ‘‘REC11 OMMENDED ORDERS’’; 

12 (ii) by striking ‘‘use’’ and inserting ‘‘, 

13 using’’; 

14 (iii) by striking ‘‘subsection (a)(3)’’ 

15 and inserting ‘‘subsection (a)(4)’’; 

16 (iv) by striking ‘‘to issue recommenda17 tions’’ and inserting ‘‘, recommend orders’’; 

18 (v) by striking ‘‘Such recommenda19 tions’’ and inserting ‘‘Any such order rec20 ommended’’; 

21 (vi) by inserting ‘‘to the officials de22 scribed under clause (iii) of paragraph 

23 (6)(A) for issuance under such paragraph’’ 

24 after ‘‘thereof,’’; 


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1 (vii) in subparagraph (D), by striking 

2 ‘‘supply chain risk’’ and inserting ‘‘acquisi3 tion security and supply chain risk associ4 ated with the acquisition of covered arti5 cles’’; and 

6 (viii) in subparagraph (E), by striking 

7 ‘‘exclusion or removal’’; 

8 (C) by redesignating paragraphs (3) 

9 through (7) as paragraphs (4) through (8); 

10 (D) by inserting after paragraph (2) the fol11 lowing: 

12 ‘‘(3) DESIGNATED ORDERS.— 

13 ‘‘(A) EXCLUSION OR REMOVAL OF COVERED

14 SOURCES OF CONCERN.— 

15 ‘‘(i) IN GENERAL.—Not later than 270 

16 days after a source of concern is designated 

17 as a covered source of concern, the Coun18 cil— 

19 ‘‘(I) shall provide to the officials 

20 described under clause (iii) of para21 graph (6)(B) for issuance under such 

22 paragraph orders requiring— 

23 ‘‘(aa) the exclusion of the 

24 covered source of concern from 

25 any executive agency procurement 


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1 action, including source selection 

2 and consent for a contractor; or 

3 ‘‘(bb) the removal of covered 

4 articles produced or provided by 

5 the covered source of concern from 

6 the information system of execu7 tive agencies; or 

8 ‘‘(II) report to Congress why the 

9 Council has determined to not issue an 

10 order described under subclause (I) 

11 with respect to the covered source of 

12 concern or covered articles produced or 

13 provided by the covered source of con14 cern. 

15 ‘‘(ii) CONTENTS OF ORDER.—Any 

16 order provided under clause (i) shall in17 clude— 

18 ‘‘(I) information regarding the 

19 scope and applicability of the order, 

20 including any information necessary to 

21 positively identify the covered source of 

22 concern or covered articles produced or 

23 provided by the covered source of con24 cern required to be excluded or removed 

25 under the order; 


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1 ‘‘(II) a summary of any risk as2 sessment reviewed or conducted in sup3 port of the order; 

4 ‘‘(III) a summary of the basis for 

5 the order, including a discussion of less 

6 intrusive measures that were consid7 ered and why such measures were not 

8 reasonably available to reduce security 

9 risk; 

10 ‘‘(IV) a description of the actions 

11 necessary to implement the order; and 

12 ‘‘(V) where practicable, in the 

13 Council’s sole and unreviewable discre14 tion, a description of mitigation steps 

15 that could be taken by the covered 

16 source of concern that may result in 

17 the Council rescinding the order. 

18 ‘‘(B) EXCLUSION OR REMOVAL OF SECOND

19 ORDER SOURCES OR COVERED ARTICLES.— 

20 ‘‘(i) ISSUANCE.—In the case that the 

21 Council provides an order under subpara22 graph (A), the Council may also provide an 

23 order to the officials described under para24 graph (6)(A)(iii) requiring the exclusion of 

25 sources or covered articles from executive 


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1 agency procurement actions or removal of 

2 covered articles from executive agency infor3 mation systems if— 

4 ‘‘(I) such covered articles or such 

5 sources use a covered source of concern 

6 in the performance of a contract with 

7 the executive agency; or 

8 ‘‘(II) such sources enter into a 

9 contract, the performance of which 

10 such source knows or has reason to be11 lieve will require, in the performance 

12 of a contract with the executive agency, 

13 the use of a covered source of concern 

14 or the use of a covered article produced 

15 or provided by a covered source of con16 cern. 

17 ‘‘(ii) EFFECTIVE DATE CONSIDER18 ATIONS.—Any effective date prescribed by 

19 the Council for an order issued pursuant to 

20 clause (i) shall take into account— 

21 ‘‘(I) the risk posed by the covered 

22 source of concern or the covered article 

23 produced or provided by the covered 

24 source of concern to the national secu25 rity of the United States; 


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1 ‘‘(II) the likelihood of the covered 

2 source of concern or the covered article 

3 produced or provided by the covered 

4 source of concern causing imminent 

5 threat to public health and safety; 

6 ‘‘(III) the availability of an alter7 native source or covered article pro8 duced or provided by an alternative 

9 source; and 

10 ‘‘(IV) an assessment of the poten11 tial direct or quantifiable costs that 

12 may be incurred by the Federal Gov13 ernment, a State, local, or Tribal gov14 ernment, or by the private sector, as a 

15 result of compliance by the head of an 

16 executive agency with such an exclu17 sion or removal order.’’; 

18 (E) in paragraph (4), as so redesignated— 

19 (i) in the heading, by striking ‘‘OF

20 RECOMMENDATION AND REVIEW’’ and in21 serting ‘‘AND REVIEW OF RECOMMENDED

22 AND DESIGNATED ORDERS’’; 

23 (ii) by striking ‘‘ the recommendation’’ 

24 each place the term appears, and inserting 

25 ‘‘ the order’’; 


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1 (iii) in the matter preceding subpara2 graph (A), by striking ‘‘A notice of the 

3 Council’s recommendation under paragraph 

4 (2)’’ and inserting ‘‘Before the Council rec5 ommends an order under paragraph (2) or 

6 issues an order under paragraph (3), a no7 tice’’; 

8 (iv) in subparagraph (A), by striking 

9 ‘‘a recommendation has been made’’ and in10 serting ‘‘the order will be recommended or 

11 issued’’; 

12 (v) in subparagraph (D), by striking 

13 ‘‘paragraph (5)’’ and inserting ‘‘paragraph 

14 (6)’’; and 

15 (vi) by inserting a new subparagraph 

16 to read as follows: 

17 ‘‘(F) Until an order is issued pursuant to 

18 paragraph (6), information collected under this 

19 paragraph shall be exempt from public disclosure 

20 and shall be exempt from disclosure under sec21 tion 552(b)(3)(B) of title 5, United States Code 

22 (commonly referred to as the ‘Freedom of Infor23 mation Act’).’’; 

24 (F) in paragraph (5), as so redesignated— 


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1 (i) by striking ‘‘paragraph (3)’’ and 

2 inserting ‘‘paragraph (4)’’; 

3 (ii) in subparagraph (A), by striking 

4 ‘‘paragraph (5)’’ and inserting ‘‘paragraph 

5 (6)’’; and 

6 (iii) in subparagraph (B), by striking 

7 ‘‘paragraph (6)’’ and inserting ‘‘paragraph 

8 (7)’’; 

9 (G) in paragraph (6), as so redesignated— 

10 (i) by amending subparagraph (A) to 

11 read as follows: 

12 ‘‘(A) ISSUANCE OF RECOMMENDED OR13 DERS.— 

14 ‘‘(i) MODIFICATIONS TO ORDER.—After 

15 considering any response properly sub16 mitted by a source under paragraph (4) re17 lated to an order to be recommended under 

18 paragraph (2), the Council shall— 

19 ‘‘(I) make such modifications to 

20 the order as the Council considers ap21 propriate; and 

22 ‘‘(II) provide the order (together 

23 with any information submitted by a 

24 source under paragraph (4) related to 


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1 such order) to the officials described 

2 under clause (iii). 

3 ‘‘(ii) ORDER.—Not later than 90 days 

4 after receiving a recommended order, the of5 ficials described under clause (iii) shall— 

6 ‘‘(I) issue the order to the heads of 

7 the applicable agencies; or 

8 ‘‘(II) submit a notification to the 

9 Council that the order will not be 

10 issued, that includes in the notification 

11 to the Council, all the reasons for why 

12 the order will not be issued. 

13 ‘‘(iii) OFFICIALS.—The officials de14 scribed in this clause are as follows: 

15 ‘‘(I) The Secretary of Homeland 

16 Security, for exclusion and removal or17 ders applicable to civilian agencies, to 

18 the extent not covered by subclause (II) 

19 or (III). 

20 ‘‘(II) The Secretary of Defense, for 

21 exclusion and removal orders applica22 ble to the Department of Defense and 

23 national security systems other than 

24 sensitive compartmented information 

25 systems. 


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1 ‘‘(III) The Director of National 

2 Intelligence, for exclusion and removal 

3 orders applicable to the intelligence 

4 community and sensitive compart5 mented information systems, to the ex6 tent not covered by subclause (II).’’; 

7 (ii) by redesignating subparagraphs 

8 (B) through (E) as subparagraphs (C) 

9 through (F), respectively; 

10 (iii) by inserting after subparagraph 

11 (A) the following: 

12 ‘‘(B) ISSUANCE OF DESIGNATED ORDER.— 

13 ‘‘(i) MODIFICATIONS.—After consid14 ering any response properly submitted by a 

15 source under paragraph (4) related to a des16 ignated order, the Council shall— 

17 ‘‘(I)(aa) make any such modifica18 tions to the order as the Council con19 siders appropriate; or 

20 ‘‘(bb) if the Council deter21 mines that the issuance of a des22 ignated order is not warranted, 

23 rescind the designated order and 

24 notify the source of the rescission; 

25 and 


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1 ‘‘(II) except in the case that the 

2 Council rescinds the designated order 

3 under subclause (I)(bb), provide the 

4 designated order (including any modi5 fications made to such order by the 

6 Council) to the officials described in 

7 clause (iii). 

8 ‘‘(ii) ISSUANCE.—The officials de9 scribed in clause (iii) shall, not later than 

10 90 days after receiving a designated order, 

11 issue the order to the heads of the applicable 

12 agencies. 

13 ‘‘(iii) OFFICIALS.—The officials de14 scribed in this clause are as follows: 

15 ‘‘(I) The Secretary of Homeland 

16 Security, for exclusion and removal or17 ders applicable to civilian agencies, to 

18 the extent not covered by subclause (II) 

19 or (III). 

20 ‘‘(II) The Secretary of Defense, for 

21 exclusion and removal orders applica22 ble to the Department of Defense and 

23 national security systems other than 

24 sensitive compartmented information 

25 systems. 


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1 ‘‘(III) The Director of National 

2 Intelligence, for exclusion and removal 

3 orders applicable to the intelligence 

4 community and sensitive compart5 mented information systems, to the ex6 tent not covered by subclause (II). 

7 ‘‘(iv) WAIVER.—An official described 

8 under clause (iii) may waive for a period 

9 of not more than 365 days the application 

10 of an order issued by such official under 

11 clause (ii) with respect to a covered source 

12 of concern or a covered article produced or 

13 provided by a covered source of concern if 

14 the official submits, not later than 30 days 

15 after making such waiver, a written notifi16 cation to the Council, appropriate congres17 sional committees, and leadership that con18 tains the justification for such waiver. 

19 ‘‘(v) RENEWAL OF WAIVER.—An offi20 cial described under clause (iii) may renew 

21 a waiver under clause (iv) for an additional 

22 period of not more than 180 days if— 

23 ‘‘(I) the renewal of the waiver is 

24 in the national security interests of the 

25 United States; and 


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1 ‘‘(II) the official submits, not later 

2 than 30 days after renewing such 

3 waiver, a written notification to the 

4 Council, appropriate congressional 

5 committees, and leadership that in6 cludes the justification for renewing the 

7 wavier. 

8 ‘‘(vi) NATIONAL SECURITY WAIVER.— 

9 An official described under clause (iii) may 

10 waive the application of an order issued by 

11 such official under clause (ii) with respect 

12 to a covered source of concern or a covered 

13 article produced or provided by a covered 

14 source of concern for any activity subject to 

15 the reporting requirements under title V of 

16 the National Security Act of 1947 (50 

17 U.S.C. 3091 et seq.) or any authorized in18 telligence activities of the United States. 

19 ‘‘(vii) RESCISSION OF ORDER.—An ex20 clusion or removal order issued under this 

21 subparagraph by an official may be re22 scinded only by the Council.’’. 

23 (iv) in subparagraph (C), as so redes24 ignated— 


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1 (I) by striking ‘‘subparagraph 

2 (A)’’ and inserting ‘‘subparagraph 

3 (A)(iii) or (B)(iii)’’; 

4 (II) by striking ‘‘this subpara5 graph’’ and inserting ‘‘subparagraph 

6 (A)(iii) or (B)(iii)’’; and 

7 (III) by striking ‘‘, except’’ and 

8 all that follows before the period at the 

9 end; 

10 (v) in subparagraph (D), as so redesig11 nated— 

12 (I) by striking ‘‘this paragraph’’ 

13 and inserting ‘‘subparagraph (A)(iii) 

14 or (B)(iii)’’; and 

15 (II) by striking ‘‘help’’; 

16 (vi) in subparagraph (E), as so redes17 ignated, by striking ‘‘this paragraph’’ and 

18 inserting ‘‘subparagraph (A)’’; and 

19 (vii) by adding after subparagraph 

20 (F), as so redesignated, the following: 

21 ‘‘(G) EFFECTIVE DATE OF ORDERS.—The 

22 effective date of an order issued under this para23 graph may not be more than 365 days after the 

24 order is issued.’’; 


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1 (H) in paragraph (7), as so redesignated, 

2 by striking ‘‘paragraph (5)(A)’’ and inserting 

3 ‘‘subparagraph (A) or (B) of paragraph (6)’’; 

4 and 

5 (I) in paragraph (8), as so redesignated, by 

6 striking ‘‘paragraph (5)’’ and inserting ‘‘para7 graph (6)’’; 

8 (4) in subsection (e), by inserting ‘‘the Chief 

9 Data Officers Council,’’ before ‘‘the Chief Acquisi10 tion’’; and 

11 (5) in subsection (f)(2), by striking the period at 

12 the end and inserting ‘‘unless such source is specifi13 cally designated by statute as a covered source of con14 cern for the purposes of this subchapter.’’. 

15 (d) STRATEGIC PLAN.—Section 1324(a) of title 41, 

16 United States Code, is amended— 

17 (1) by inserting ‘‘, and periodically thereafter’’ 

18 after ‘‘2018’’; 

19 (2) in the matter preceding paragraph (1), by 

20 inserting ‘‘acquisition security and’’ before ‘‘supply 

21 chain risks’’; 

22 (3) in paragraph (8), by inserting ‘‘acquisition 

23 security and’’ before ‘‘supply chain risks’’; and 

24 (4) in paragraph (9)(A), by inserting ‘‘acquisi25 tion security and’’ before ‘‘supply chain risk’’. 


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1 (e) REQUIREMENTS FOR EXECUTIVE AGENCIES.—Sec2 tion 1326 of title 41, United States Code, is amended— 

3 (1) in subsection (a)— 

4 (A) in paragraph (1), by striking ‘‘; and’’ 

5 and inserting a semicolon; 

6 (B) in paragraph (2), by striking the period 

7 at the end and inserting ‘‘; and’’; and 

8 (C) by adding at the end the following: 

9 ‘‘(3) providing any information requested by the 

10 Chairperson of the Council for the purpose of car11 rying out activities of this subchapter, subject to ap12 plicable law or policy on the control and handling of 

13 classified, sensitive, or proprietary information.’ ’’’; 

14 (2) by striking ‘‘supply chain’’ each place such 

15 term appears and inserting ‘‘security and supply 

16 chain’’; and 

17 (3) in subsection (b)(6), by striking ‘‘supply 

18 chain’’ and inserting ‘‘security or supply chain’’. 

19 (f) JUDICIAL PROCEDURE.—Section 1327(b) of title 

20 41, United States Code, is amended— 

21 (1) in paragraph (1), by striking ‘‘section 

22 1323(c)(6)’’ and inserting ‘‘section 1323(c)(7)’’; 

23 (2) in paragraph (3), by striking ‘‘section 

24 1323(c)(5)’’ and inserting ‘‘sections 1323(c)(6)’’; and 


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1 (3) in paragraph (4), by amending subpara2 graph (B)(i) to read as follows: 

3 ‘‘(i) FILING OF RECORD.—The United 

4 States shall file with the court an adminis5 trative record, which shall consist of— 

6 ‘‘(I) the information the Council 

7 relied upon in issuing a designated 

8 order under 1323(c)(6); and 

9 ‘‘(II) the information that the ap10 propriate official relied upon in 

11 issuing an exclusion or removal order 

12 under section 1323(c)(6) or a covered 

13 procurement action under section 

14 4713.’’. 

15 (g) ADDITIONAL PROVISIONS.—Subchapter III of 

16 chapter 13 of title 41, United States Code, is amended by 

17 adding at the end the following: 

18 ‘‘§ 1329. Additional provisions 

19 ‘‘(a) COMPLIANCE WITH EXISTING PROHIBITIONS.— 

20 In implementing this subchapter, the Council shall coordi21 nate, as applicable and practicable, with the head of an 

22 agency to assist with compliance by the agency with— 

23 ‘‘(1) section 889 of the John S. McCain National 

24 Defense Authorization Act of 2019 (Public Law 115– 

25 232; 41 U.S.C. 3901 note); 


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1 ‘‘(2) section 5949 of the James M. Inhofe Na2 tional Defense Authorization Act of 2023 (Public Law 

3 117–263; 41 U.S.C. 4713 note); and 

4 ‘‘(3) sections 1821 through 1833 of the American 

5 Security Drone Act of 2023 (Public Law 118–31). 

6 ‘‘(b) UPDATE TO REGULATIONS.—The Federal Acqui7 sition Security Council shall update, within two years after 

8 the date of the enactment of this section, any regulations 

9 of the Council as necessary.’’. 

10 (h) TECHNICAL AND CONFORMING CHANGES.—Sub11 chapter III of chapter 13 of title 41, United States Code, 

12 is amended— 

13 (1) in the table of sections for the subchapter by 

14 adding after the item related to section 1328 the fol15 lowing: 

‘‘1329. Additional provisions.’’; 

16 (2) in section 1321(1)(B), by striking ‘‘Govern17 ment Reform’’ and inserting ‘‘Accountability’’; and 

18 (3) by striking ‘‘of this title’’ each place the term 

19 appears. 

20 SEC. 3. REALLOCATING EXISTING RESOURCES. 

21 Section 5949(l) of the James M. Inhofe National De22 fense Authorization Act for Fiscal Year 2023 (Public Law 

23 117–263) is amended— 


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1 (1) in paragraph (1), by striking ‘‘Office of 

2 Management and Budget’’ and inserting ‘‘Office of 

3 the National Cyber Director’’; and 

4 (2) in paragraph (2), by striking ‘‘Office of 

5 Management and Budget’’ and inserting ‘‘Office of 

6 the National Cyber Director’’. 


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Calendar No. 702 

118TH CONGRESS 

2D SESSION S. 5310 

[Report No. 118–296] 

A BILL 

To amend title 41, United States Code, to make 

Security Council, and for other purposes. changes with respect to the Federal Acquisition 

DECEMBER 16, 2024 

Reported with an amendment 


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